Non-banks using brokers to attract borrowers
Non-aligned mortgage brokers now provide around 23 per cent of all home loans to borrowers, according to the Mortgage and Finance Association of Australia (MFAA).
Based on figures from research provider, comparator, the proportion of new home loans originated by independent regional bank brokers over the three months to June was 9.1 per cent, followed by international banks (4.5 per cent), brokers' white label loans (3.1 per cent), other independent lenders (2.6 per cent), non-bank lenders (2.5 per cent), and credit unions, building societies and mutual (1.3 per cent).
The major banks still held the lion's share of the mortgage market through brokers, with 61.2 per cent of new loans originating from the big four (ANZ, Commonwealth Bank, National Australia Bank and Westpac), and 15.8 per cent from regional banks owned by or aligned to major banks including BankWest and St George.
MFAA chief executive Phil Naylor said the figures show that regional banks, independent and international banks and non-bank lenders are sharpening their offerings and using brokers to attract consumers.
"The increased expertise and expansion of broker and aggregator networks shows that lenders, especially those outside the big four, are increasingly working with the brokers to get to market and gain share," he said.
The report by comparator also found that brokers lifted their provision of loans in the home loan market during the June quarter by 24 per cent from $24.7 billion (June quarter 2012) to $30.6 billion, maintaining their share of the market at 45 per cent.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
